Will & Estate Planning: Why It Matters and How to Get Started

Introduction

Will and estate planning are a crucial part of financial management. It ensures that your assets are distributed according to your wishes and provides security for your loved ones. In India, where family and property matters are closely linked, having a clear will or estate plan is vital to avoid disputes and protect your legacy.

What is a Will?

A will is a legal document that outlines how your assets will be divided after your demise. The person creating the will is called the testator. Through a will, you can:

Name beneficiaries to receive specific assets
Appoint an executor to carry out your instructions
Nominate guardians for minor children

Wills in India are governed by the Indian Succession Act, 1925. While registration is not mandatory, it adds legal credibility and helps prevent disputes. Registration fee is a fixed, nominal amount, not a percentage of the value of assets.

What is Estate Planning?

Estate planning is a broader strategy that covers the management and transfer of your assets during your lifetime and after your demise. It includes:

Wills
Trusts – arrangements where a trustee holds assets for beneficiaries
Power of Attorney – authorizes someone to make decisions if you’re unable to
Advance Healthcare Directives – state your medical care preferences, in case of incapacitation
Tax Planning – helps reduce tax liability on your estate

Incapacitation, due to illness or injury, can make it difficult for you to make decisions. Without proper documents like a power of attorney or healthcare directive, your family may face legal challenges in managing your affairs.

From a wealth transfer and tax planning perspective, estate planning is viable in case of asset value exceeding 75 crores. This is due the costs involved in forming a trust are significantly higher than drafting a will.

Why Create a Will?

A will provides several key benefits:

Clear asset distribution – Reduces confusion and prevents conflicts
Protects minor children – Lets you choose their guardians
Streamlines the legal process – Simplifies probate and reduces delays
Ensures personal autonomy – Your wishes are respected after your demise

Without a will, your estate is divided according to intestate succession laws, which may not reflect your wishes.

Why Estate Planning is Important

Estate planning is not just about wealth. It secures your family’s future and ensures peace of mind. Key benefits include:

Minimizing family disputes
Protecting your children’s welfare
Reducing taxes and legal complications
Ensuring business or investment continuity
Providing peace of mind for you and your family

Risks of Not Having a Will or Estate Plan

Failing to plan your estate can lead to:

Unintended asset distribution – The law decides, not you
No guardianship decisions – Courts appoint guardians for minor children
Family conflicts – Lack of clarity can cause disputes
Legal delays and higher costs – Probate becomes lengthy and expensive
Lack of decision-making authority – No one may be authorized to manage your affairs if you are incapacitated
Neglected assets – Properties and investments may be mismanaged or lost

How to Create a Will in India

Creating a will in India is a simple but important process. Here’s what you need:

Documents:

Proof of identity (e.g., Aadhaar card, passport)
List of beneficiaries and their relationships
Inventory of assets (property, bank accounts, investments)

Legal Requirements:

The will must be signed by the testator in the presence of two witnesses
Registration is optional, but recommended for added legal strength

Steps to Create a Will:

Draft the will with a detailed list of assets and beneficiaries
Name an executor to implement the will
Sign the will in the presence of two witnesses
Store securely or register the will

Conclusion

Will and estate planning are essential for anyone who wants to safeguard their family’s future. They provide clarity, reduce legal complications, and ensure your assets are handled according to your values and intentions.

We, at Vika Wealth, can help you draft a will and plan your estate. Taking the time now to create a will and establish an estate plan can bring lasting peace of mind for you and your loved ones.